Improved jobs data casts further doubt on Mark Carney's forward guidance

The latest Business Trends survey from BDO, the accountancy firm, shows that private sector hiring intentions have hit a 30-month peak, as “buoyant” services and manufacturing sectors point to sustained economic growth.

The BDO employment index reached 99.4 in December, up from 98.3 in the previous month, as hiring expectations catch up with improving UK business confidence.

The index has now been at or above the crucial 95.0 level that indicates employment growth for two months, indicating that employment is gaining pace with the wider economic recovery.

BDO’s optimism index, which predicts business performance two quarters ahead, measured 103.4 in December, up from 103.1 in November – the index’s highest reading in seven-and-a-half years.

This positive outlook is underpinned by “continuing improvement in business conditions”, according to the survey, as BDO’s output index, which predicts short-run growth expectations, increased to 102.5 in December, up from 101.8 the previous month.

BDO’s report of improved business confidence comes as Astbury Marsden, the financial services recruitment company, announced that 1,340 City jobs were created in December, a 67pc increase year on year.

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